Applies mainly to international equities. Bank or other Financial institution that keeps custody of Stock certificates and other Assets of a mutual fund, individual, or corporate client.
In relation to American Depositary Receipts (ADRs), ...
A custodian bank is a financial institution that is responsible for holding and keeping safe the various assets of an investment company.
Bank assigned by a mutual fund to act as its custodian. The bank performs clerical functions and holds the fund's cash and securities.
rate Current rate method Current ratio Current yield Current/noncurrent method Current-coupon issues Cushion Cushion bonds Cushion theory CUSIP CUSIP number Custodial fees Custodian Custodian bank ...
^ exchange-handbook.co uk article on the risks associated with Depositories, at the Handbook of world stock, derivative and commodity exchanges website.
DRs are created when a broker purchases a non-UK company's shares in the home stock market and delivers those shares to the depositary's local custodian bank. The custodian then instructs the depositary bank to issue DRs to the investor.
The measures also clarify the ’s liability in the event that assets are misused by fund managers, and firm up rules requiring banks to keep the fund’s asset pool segregated from their own investments.
The confirmation of trades, and the reporting of the transaction, may be much slower than in American markets. Finally, shares are often held safe with custodian banks and depositories.
Rules providing for the safekeeping of shares held by s or depositories may not be as well developed in some foreign markets, with the risk that your shares may not be protected if the custodian has credit problems or fails.
Plan completion life insurance: Insurance with an optional feature stipulating that if the planholder dies before completing the contract, a life insurance policy will complete the purchase. The insurance proceeds are paid to the custodian bank ...
A second function of the authorized participant begins when the block of underlying securities have been obtained, that is when the authorized participant must transfer these securities usually to a .
See also: Stock, Custodian, Market, Deposit, Share